La. Admin. Code tit. 13 § I-703
Act 423-Act 423 of the 2013 Regular Session of the Louisiana Legislature
Act 18-Act 18 of the 2016 First Extraordinary Session of the Louisiana Legislature
Affiliate -
1. any business entity that is:
a. controlled by the business;
b. a controlling owner of the business;
c. controlled by an entity described in Subparagraph a or b; or
d. another franchisee of the same franchisor;
2.control, for purposes of this definition, means owning either directly or indirectly through control of or by another business entity:
a. a majority of the voting stock or other voting interest of such business entity or the business; or
b. stock or other interest whose value is a majority of the total value of such business entity or the business;
3. a controlled or controlling business entity will be deemed a "non-affiliate" (not an affiliate) if LED determines that neither the business nor any of its controlling owners exercise authority over the management, business policies and operations of the business entity;
4. a controlled or controlling business entity will be deemed an unrelated affiliate" (not an affiliate) if LED determines that the business entity is not engaged in any line of business related to the project activities.
Beginning of the Project -
1. the first day on which project foundations are started or where foundations are unnecessary, the first day on which installation of the project facility begins or the first day that materials or equipment purchased for the project are received;
2. where there is no construction, installation, or purchase of materials or equipment, the first day on which a new hire is made in connection with the project; or
3. the beginning date reported on the application (which date must be on or after the date the advance notification was filed).
Board - the Board of Commerce and Industry.
Business - a legal entity applying for the enterprise zone program that conducts any activity carried on for the production of income from selling goods or performing services. A business may be conducted in the form of either a for-profit or not-for-profit entity. A not-for-profit entity will be considered a business only if it provides goods or services for a fee based upon the cost of providing those goods or services (for example, hospitals).
Business Incentives Services - the Business Incentive Services Division of the Office of Business Development of the department.
Contract Effective Date - the day that the advance notification and fee were received by Business Incentives Services or the beginning of the project shown on the application. The contract effective date cannot be earlier than the date the advance notification was received by Business Incentive Services unless a waiver of timely filing has been approved by the board.
Department - Louisiana Department of Economic Development.
Department of Revenue - Louisiana Department of Revenue.
Domicile - the place of a person's principal establishment or habitual residence. A change of domicile may be shown by positive and satisfactory proof of establishment of domicile as a matter of fact with the intention of remaining in the new place and of abandoning the former domicile. Such proof may include a sworn declaration of intent recorded in the parish to which a person intends to move, voter registration, or similar evidence of such intent.
Economic Development Zone -
1. a contiguous geographic area with a visible boundary, owned or operated by a political subdivision or an entity created by a political subdivision for commercial or industrial development purposes, including but not limited to the following:
a. industrial park;
b. business park;
c. airport or air park;
d. research park;
e. research and development park;
f. downtown development district with taxing and bonding authority;
g. former federal facility (immediately prior owner and occupant must have been a federal governmental entity), excluding a single building or small grouping of buildings; or
h. port;
2. an economic development zone must be designated as such by the political subdivision in which it is located, and approved by the board. The location of an economic development zone once defined is permanent, and cannot be moved or relocated.
Employment Baseline-
1. the baseline from which net new jobs are determined, to be calculated as follows:
a. for projects with advance notifications filed with business incentives services prior to June 21, 2013, employment baseline will be determined in accordance with prior policy and practice in place at the time of the filing of the advance notification.
b. for projects with advance notifications filed with business incentives services on or after June 21, 2013 but prior to April 1, 2016,
i. the median number of full time employees of the business (including employees of affiliates, and employees of unrelated affiliates who have also been employed by the business within the 12 months prior to the contract effective date) at the project site, during the payroll periods including the 12th day of the month, in the last four months completed prior to the contract effective date (the median is calculated by discarding the months with the highest and lowest number of employees, and averaging the number in the remaining two months); or
ii. the last annual average number of full time employees certified under an enterprise zone contract for the business that was in effect on the day prior to the contract effective date;
c. for projects with advance notifications filed with business incentives services on or after April 1, 2016 but prior to the effective date of the 2020 Rule promulgation:
i. equal to the median number of full time employees of the business (including employees of affiliates, and employees of unrelated affiliates who have also been employed by the business within the 12 months prior to the contract effective date) statewide, during the payroll periods including the 12th day of the month, in the last four months completed prior to the contract effective date (the median is calculated by discarding the months with the highest and lowest number of employees, and averaging the number in the remaining two months).
d. for projects with advance notifications filed with business incentives services after the effective date of the 2021 rule promulgation:
i. equal to the median number of full time employees of the business (including employees of affiliates, and employees of unrelated affiliates who have also been employed by the business within the six months prior to the contract effective date) statewide, during the payroll periods including the 12th day of the month, in the last six months completed prior to the contract effective date (the median is calculated by discarding the months with the highest and lowest number of employees, and averaging the number in the remaining four months).
2. the baseline must be maintained in any year for which the business requests job tax credits;
3. for projects with advance notifications filed with business incentives services prior to June 21, 2013, employment baseline will be determined in accordance with prior policy and practice in place at the time of the filing of the advance notification.
Enterprise Zone - a census block group which is economically distressed and in need of expansion of business and industry and the creation of jobs, and designated by the board to be eligible for the benefits of this Chapter in accordance with R.S. 51:1784.
Full Time Employee - an employee who is reported on the business's quarterly report and is scheduled to work 35 hours per week.
Grocery Store-a business that primarily engages in activities that qualify for one of the following NAICS codes: 445110, 445210, 445220, 445230, 445291, and 452910.
Headquarters - the corporate domicile of the company, together with all executive and administrative jobs normally constituting a corporate headquarters, or the regional headquarters support services of the company, together with all executive and administrative jobs normally constituting a regional corporate headquarters.
Hire Date - the first day of work for which the business directly pays an employee.
Lacking Basic Skills - an employee who exhibits below a ninth grade level proficiency in reading or writing or math.
Louisiana Workforce Commission - formerly known as the Louisiana Department of Labor.
NAICS - North American Industrial classification system.
Net New Job -
1. a position of employment that is:
a. created on or after the contract effective date;
b. in addition to the number of jobs in the employment baseline;
c. based at the site of the enterprise zone project;
d. filled by a full time employee; who is
i. a United States citizen domiciled in Louisiana, or who becomes domiciled in Louisiana within 60 days after hire date; and who is
ii. reported on the business's quarterly report;
2. the number of net new jobs filled by full time employees shall be determined by averaging the monthly totals of full time employees over a minimum of 7 months for the first and last year of the contract period, and over a 12 month period for all other years;
3. for purposes of determining qualification of the business for the enterprise zone program under §701 E, net new jobs shall be limited to permanent full-time jobs that are in addition to the number of permanent full-time jobs included in the employment baseline;
4. jobs in which employees perform essentially the same work at the same location both before and after the contract effective date are not net new jobs unless:
a. there has been an arm's length transfer of ownership between unrelated companies (not affiliates); and
b. either the location has been out of operation for at least three months, or the secretary determines that the jobs would have likely been lost to the state absent the transfer;
5.
a. transferred jobs which are not net new jobs include:
i. jobs transferred, or jobs associated with work or sales transferred to the project site from other Louisiana sites of the business (including affiliates), unless back-filled at the original site;
ii. jobs transferred, or jobs associated with work or sales transferred, to the business from affiliates and unrelated affiliates on the project site, unless back-filled;
iii. jobs transferred, or jobs associated with work or sales transferred, to the project site from other Louisiana sites as a result of the business (including affiliates) acquiring a business operation, or substantially all of its assets, and continuing the business operation;
b. jobs created for the project, but temporarily assigned to another site until the site is ready or for training or similar purposes, are not considered transferred jobs and may be considered net new jobs when re-assigned to the project site;
6. lost jobs which must be deducted in determining net new jobs include:
a. jobs lost due to closure of any site of the business (including affiliates) that:
i. is located within the same parish; and
ii. provides the same goods or services as the project site;
b. jobs lost due to downsizing of any site of the business (including affiliates) that:
i. is located within the same parish; and
ii. provides the same goods or services as the project site;
iii. the project site and the other site each sell their goods or services primarily into that parish; and
iv. the downsizing was anticipated by the business at the time the qualification certification was filed;
c. jobs lost due to closure or downsizing of any site of the business (including affiliates) that:
i. is located in the state of Louisiana; and
ii. provides the same goods or services;
iii. primarily for the same market segment or customer base, as the project site; and
iv. the closure or downsizing was anticipated by the business at the time the qualification certification was filed;
d. jobs lost by the business (including affiliates) due to relocation outside Louisiana or downsizing of headquarters operations or headquarters support services of the business (including any intermediate or ultimate parent company), and the relocation or downsizing was anticipated by the business at the time the qualification certification was filed.
Permanent Job - as established in the qualification certification (as of the time the qualification certification is filed and irrespective of subsequent modifications to the job), a job that has no anticipated end date falling within the period commencing 45 days prior to the contract effective date and ending five years after the contract effective date.
Pharmacy-any business located within Louisiana where drugs are dispensed and pharmacy primary care is provided and where the place has obtained a permit per R.S. 37:1221 prior to the commencement of operation.
Placed in Service - the date indicated as placed in service on the business's federal tax return depreciation schedule.
Political Subdivision - in this Chapter, a state, parish, municipality or other political subdivisions, including and not limited to a law enforcement or other special district authorized by law to perform governmental functions.
Project - a construction, expansion, or other business venture and associated activities for which benefits are sought under the Enterprise Zone Program.
Project Completion Report - a report confirming the beginning of the project, the project ending date, and the benefits elected.
Project Ending Date - the date all construction and purchasing is completed and received for the project, completing the project.
Project Period - the time encompassed by the contract effective date and the project ending date.
Project Site - the contiguous physical location of a project.
Public Assistance-
1. for projects with advance notifications filed with business incentives services prior to the effective date of the 2021 Rule promulgation, public assistance shall be determined in accordance with prior policy and practice in place at the time of the filing of the advance notification, and shall be any program of assistance financed in whole or in part by a federal, state, or any local government agency, eligibility for which is dependent upon the employment status or income level of the individual. Any such assistance must have been received by the individual within a six month period prior to their hire date.
2. for projects with advance notifications filed with business incentives services after the effective date of the 2021 rule promulgation, public assistance shall be limited to the following public assistance programs; Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), Women, Infants and Children (WIC), Medicaid, unemployment benefits, or any other benefits from a similar public assistance program as determined by the department. Any such assistance must have been received by the individual within a six-month period prior to their hire date.
Qualified Expenditure - amounts classified as capital expenditures for federal income tax purposes plus exclusions from capitalization provided for in Internal Revenue Code section 263(a)(1)(A)-(L), minus the capitalized cost of land, capitalized leases of land, capitalized interest, capitalized costs of manufacturing machinery and equipment to the extent the capitalized manufacturing machinery and equipment costs are excluded from sales and use tax pursuant to R.S. 47:301(3), and the capitalized cost for the purchase of an existing building. When a taxpayer purchases an existing building and capital expenditures are used to rehabilitate the building, the costs of the rehabilitation only shall be considered qualified expenditures. Additionally, a taxpayer shall be allowed to increase their qualified expenditures to the extent a taxpayer's capitalized basis is properly reduced by claiming a federal credit.
Quarterly Report - the quarterly report of wages paid that a business files with the Louisiana Workforce Commission.
Rural Enterprise Zone - an enterprise zone located in a parish having a current U.S. Census population of 75,000 or less.
State - state of Louisiana.
Unemployable by Traditional Standards - having no prior work history or job training, having a criminal record (excluding misdemeanors), having a history of being unable to retain employment after gaining it, or being physically challenged.
Unemployment Benefits-shall be limited to temporary financial assistance to workers who are unemployed through no fault of their own and who meet the requirements of the Louisiana Employment Security Law.
Urban Enterprise Zone - an enterprise zone located in a parish having a current U.S. Census population greater than 75,000.
La. Admin. Code tit. 13, § I-703